Ride on cyclicals to re-enter longer-term bull market: Ashwani Gujral, Ashwanigujral.com

In a chat with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com talks about markets in the coming week.

ET Now: What is your advice for the coming week?

Ashwani Gujral: I have two advices. One is for immediate term, i.e. for Monday and Tuesday. The market will be defensive. You need to look at how well the cyclicals are correcting and getting into the value zone.

So, the idea should be to be in this defensive trade while looking for ideas on the cyclical space to get back into the longer term bull market. Because obviously Hindustan Lever and IT stocks cannot take the market higher. They can help reduce the losses, but clearly now even the cyclical like HP, BP etc. are coming into zones where people should buy them in order to prepare for the next rally.

The idea is from a four-week perspective: use this correction to buy. From an immediate one-week perspective you should be in defensives, because they will keep you more on the upside than any cyclicals, rate-sensitive or policy-sensitive ones.